Public Choice Analysis Suggests That Bureaucrats and Public-Sector Managers Have

question 118

Multiple Choice

Public choice analysis suggests that bureaucrats and public-sector managers have a strong incentive to

• A) economize on their spending so more funds will be available for other government programs.
• B) ensure that their budget is exactly the size that would be considered economically efficient.
• C) expand their budgets to sizes beyond what would be considered economically efficient.
• D) keep individual legislators fully informed as to every expenditure.

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Definitions:

Nominal Data

Data categorized without a natural order or ranking, distinguished merely by name.

Binomial Experiment

A statistical experiment that adheres to the following criteria: fixed number of trials, only two possible outcomes, constant probability of success, and independence between trials.

Chi-squared Distribution

A statistical distribution used extensively in hypothesis testing, particularly in tests of independence and goodness-of-fit.

Contingency Table

A table used in statistics to show the distribution of one variable in rows and another in columns, useful for analyzing the relationship between two categorical variables.